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ABSTRACT
This study was carried out to examine the relationship between government health expenditure and health outcome in Nigeria with HIV/AIDS and Kwashiorkor as case study for the period of 1982-2020. The data used for this study were obtained from the world development indicators and the Central Bank of Nigeria Statistical Bulletins. The study utilized the vector autoregressive model estimation technique. The empirical findings from the VAR estimate revealed that Public Health Expenditure, Per Capita Income and Literacy Rate all have significant negative relationships with Reported cases of HIV/AIDS and Reported cases of Kwashiorkor in Nigeria. Moreover, the unit root test showed that the individual impacts of Public Health Expenditure, Per Capita Income and Literacy Rate both on Reported cases of HIV/AIDS and Reported cases of Kwashiorkor are only short-term. However, both the Trace and Max-Eigen statistics revealed one co-integrating equations thus supporting a long term relationship among the variables. Likewise the tau statistics of Engle and Granger single cointegration test the residuals is stationary and cointegrated. The impulse response function test and the variance decomposition showed that Literacy Rate contributes the most to fluctuations in both Reported cases of HIV/AIDS and Reported cases of 11 Kwashiorkor The impulse response test indicated that both Reported cases of HIV/AIDS and Reported cases of Kwashiorkor responds negatively to Public Health Expenditure, Per Capita Income and Literacy Rate in the Nigerian context. In the year 2001, the Nigerian government pledged commitment of 15% of her annual budget for health sector improvements. Among other things, the study recommend the need for government at all level to revisit this pledge and concrete arrangements be taken for the fulfillment of this pledge on a continuous basis.
